Sole Source Procurements

Sole Source Procurements

Competition is Presumed. This policy covers sole source procurements; however, the fair and open chance to compete is preeminent. Before you assert that a procurement is sole source, you should fairly and honestly attempt to identify multiple vendors or multiple brands.

Sole Source Procurement Defined. A sole source procurement is any acquisition which, by the specifications needed by the requestor or by the clear and specific restrictions imposed by a funds provider, restricts the contract to one vendor or to one brand.

Sole Source Procurement Discussed. Examples of sole source procurements are:

1. Equipment for which there is no comparable competitive product, for example, a one-of-a-kind oscilloscope that is available from only one supplier.
2. Public utility services from natural or regulated monopolies.
3. A component or replacement part for which there is no commercially available substitute, and which can be obtained only from the manufacturer.
4. An item where compatibility is the overriding consideration, such as computer operating software enhancements for an existing system.
5. A supply, equipment, part, service or supplier that, due to technically constraining factors associated with scientific research, are needed to ensure the fairness and validity of the underlying research.
6. A supply, equipment, part, service or supplier that is specifically and clearly required by a grantor, contractor, donor, or other provider of funds where the usage of those funds is specifically, explicitly, and clearly restricted by the funds provider.

There are two types of sole source assertions.

1. Supplier – One and only one supplier is capable of delivering the good or service needed, and that the supplier is peculiarly qualified in the entire market to do so.
2. Brand name – One and only one brand of good or service is capable of addressing the need, and that the brand is peculiarly capable in the entire market to do so.

When determining that a procurement is sole source, you should provide convincing justification. You should not base it on personal or professional preference, but rather provide objective evidence.

One way to strengthen a sole source assertion is to demonstrate that conducting competitive bid procedures will delay and aggravate the procurement.

Because competition is not involved, you must be able to demonstrate that the price is fair and reasonable.

If your sole source procurement falls into the dollar value that must be approved by or reported to the Board of Regents, you may be called upon to defend the action, if necessary, before the Board. You may also be required to justify your sole source procurement in cases of audit, protest, public inquiry, litigation, or similar circumstance.

Specific Sole Source Procedures.

1. For procurements that are $5,000 or less, no sole source justification is required. However, you must ensure that the source and price are fair and reasonable and represent best value to the University. Splitting of procurements to skirt the $5,000 dollar limitation is specifically prohibited.
2. For procurements exceeding $5,000 you must provide evidence that the acquisition qualifies as a sole source and that the indicated price is fair and reasonable. You must also complete and submit a sole source justification form. The order shall be placed only by a University buyer. The Purchasing Office, upon examining all documentation provided by the requestor, may take necessary actions and make prudent inquiries before placing the order.
3. The Purchasing Director shall ensure that sole source procurements otherwise comply with all other policies and procedures governing the acquisition of goods and services at the University of Oklahoma. Further, the Purchasing Director shall ensure that all reports otherwise required by separate policy and procedures do not inappropriately exclude sole source procurements just for the fact that they are sole source. Further, the Purchasing Director shall ensure that all reports requiring the disclosure of sole source procurements appropriately reflect such procurements, and are timely filed.
4. Where a sole source procurement falls into the dollar value that must be approved by or reported to the Board of Regents, you should be prepared to defend the action, if necessary, before the board. For every sole source procurement that has been executed, you should be prepared to justify the action under audit, protest, public inquiry, litigation, or similar circumstance.
5. If you knowingly execute a sole source procurement when in fact it is not, you may be subject to administrative action as otherwise provided for by Board of Regents policy.

Sole Source Justification Form. You should accompany each sole source procurement in excess of $5,000 with a duly executed Sole Source Justification Form. The form can be printed from the Purchasing Department Website.

September 6, 2007

UNIVERSITY OF OKLAHOMA

SOLE SOURCE JUSTIFICATION

THIS IS A JUSTIFICATION FOR SOLE VENDORand/or SOLE BRAND

CAMPUS NORMAN HSC SCHUSTERMAN OTHER -

DEPARTMENT- ______BUILDING/ROOM -

REQUESTOR- ______PHONE -

REQUISITION NUMBER - DATE -

I have read and understand the Policies and Procedures of the Board of Regents of the University of Oklahoma with regard to sole source procurements. I understand that competition is the preeminent consideration in the expenditure of University funds, and I acknowledge the University's commitment to the principle of fairness to any vendor who would like to do business with the University. After observing these principles and considerations, I hereby submit that the goods, services, and/or vendor specified in the accompanying requisition fit the University's sole source criteria for the following reasons (in your justification, please include a description of the efforts you made to observe the principles of competition and fairness, and why those efforts failed in this case).

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The following provides justification as to reasonableness of price.

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______I understand that I may be required to justify this sole source procurement before appropriate authority, including the President and the Board of Regents, and that my signing this document knowing any of it to be false may subject me to administrative action.

Purchasing Approval / Signature of Requestor______
Print Name______

September 6, 2007